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Market Analysis - 05.12.2020

We provide key support and resistance levels for the following futures products daily:

Crude Oil (/CL)

S&P 500 (/ES)

NASDAQ (/NQ)

Natural Gas (/NG)

Euro (/6E)

British Pound (/6B)

 

CRUDE OIL


Key Support Levels:

23.41

24

24.90

25 - GEX

25.49


Key Resistance Levels:

26.75

30 - GEX


Auction Profile:

Range bound


/CL futures are trading above the previous value area again this morning, right at resistance around 25.49. This level was strongly rejected yesterday, but price refused to make a lower low compared to Friday. This is bullish and continues to be in favor of upside movement.

 

S&P 500


Key Support Levels:

2750.25

2810.50

2846.75

2883.50

2925 - GEX


Key Resistance Levels:

2940 - GEX

2945.75


Auction Profile:

Range bound


/ES futures are trading within the previous value area after consolidating within a wide range between 2890 and 2940. Support remains strong around 2883.50 with strong resistance at 2945.75, as well. Most likely scenario is for contracts to remain in this range today, barring any significant news event.

 

NATURAL GAS


Key Support Levels:

1.70 - GEX

1.719

1.757

1.831


Key Resistance Levels:

1.86

1.912

1.971

2 - GEX

2.016


Auction Profile:

Down auction


/NG futures are trading back within the previous value area in a narrow range again today. Once more, there is little conviction from buyers and sellers. Watch for a breakout in either direction as volume increases in the market.

 

NASDAQ


Key Support Levels:

8841.50

8963

9155.75

9200 - GEX


Key Resistance Levels:

9240

9340 - GEX


Auction Profile:

Range bound


/NQ futures are trading slightly above the previous value area following strong buying pressure coming in around 9240 overnight. The choppy price action coming off of support indicates selling pressure in the midst of rising price action. This could keep contracts range bound today.

 

EURO


Key Support Levels:

1.07 - GEX

1.07659

1.08081

1.08319


Key Resistance Levels:

1.08726

1.09 - GEX

1.09113


Auction Profile:

Range bound


/6E futures are trading above the previous value area and in a strong uptrend in the overnight session. Currently, contracts are at the POC where volume might cause some selling pressure as price tries to rise further.

 

BRITISH POUND


Key Support Levels:

1.2132

1.2222

1.2293

1.23 - GEX


Key Resistance Levels:

1.2361

1.2472

1.2544

1.255 - GEX

1.264


Auction Profile:

Range bound


/6B futures are trading above the previous value area after strong support around 1.2293. With the large low volume node just above current price, look for upward movement to slow and return downward, barring any significant news.

 

FINAL THOUGHTS


/VX futures have dropped into the 20s as volatility continues to slowly decrease. Gamma barely moved yesterday, but remains positive as it continues to put the brakes on volatility in /ES price action. DIX rose significantly as institutional buying increased. We continue to recommend keeping smaller contract size and using tighter stops.

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